By 2007, the alternative energy industry had begun to drastically increase its lobbying spending, almost doubling its expenditures from the previous year. In 2009, alternative energy organizations shelled out an unprecedented $30 million to protect and promote their interests on Capitol Hill, and this year, it’s on pace to equal that record output.

The alternative energy industry’s lobbying expenditures have grown to 12 times from its 1998 level. In comparison, oil and gas spending and mining spending have grown less than three times their 1998 amount, and electric utility spending has grown to just twice its 1998 amount.

The growing involvement of the alternative energy industry in legislative affairs is reflected not just in increased spending, but also in the number of companies and organizations that employ federally registered lobbyists.

In the late 1990s, only about 20 alternative energy industry organizations used federal lobbyists.

By 2009, there were about 200 alternative energy companies and organizations employing lobbyists to help advance the industry’s interests.

Until 2008, AWEA failed to crack the $1 million mark in annual lobbying expenditures — and most years, it spent less than $500,000. In 2009, its expenditures experienced a drastic increase, and the group spent almost $5 million on lobbying for issues related to the wind power industry.

But why did AWEA, and scores of other alternative energy corporations, trade organizations and non-profits, get involved in legislative affairs so suddenly and with such gusto?

The involvement stems from the growth in number of alternative energy companies, which was made possible by the growth in popularity of wind power in the national consciousness, said Christine Real de Azua, an AWEA spokeswoman.

Real de Azua states that this, in turn, increased AWEA’s ranks by more than 1,000 new business members in 2009 alone, many of them “companies entering or seeking to enter the wind turbine supply chain.”

Last year “was a record year for wind power in the U.S.,” Real de Azua said. “The industry installed 10,000 megawatts last year, enough to generate as much new electricity as three new nuclear plants.”

The recent involvement of AWEA in federal affairs, she said, “reflects the urgency of the industry’s number one priority — passing a national renewable electricity standard with aggressive, binding near- and long-term targets, as part of comprehensive energy and climate legislation.”

Azua de Real cites “market certainty” as a concern of AWEA’s members, who need legislative support of their industry “in order to expand their operations and invest in new manufacturing as well as new wind farm facilities.” She added that it is imperative to the members of AWEA that the U.S. government “steps up and clearly commits to developing renewable energy.”

AWEA cites the sheer potential of wind energy and the opportunity for job creation as two key points that their lobbyists emphasize in the fight for favorable legislation.

Not as drastic but certainly notable is the increased lobbying by the Solar Energy Industries Association. Until 2007, the organization had never spent more than half a million dollars on federal lobbying efforts. In 2009, it spent more than $1.6 million.

Monique Hanis, an SEIA spokeswoman, attributes the increase in lobbying presence to a growth in membership that enabled the organization to expand legislative activities.

She explains how in late 2008, SEIA’s increased lobbying pressure paid off when Congress “passed the eight-year extension of the solar investment tax credit,” which allowed the organization to move on to lobbying regarding climate, renewable energy standards, green jobs and appropriations.

The goal of spending more money than ever before on federal legislation, Hanis says, is “to remove market barriers so that solar can compete fairly with other energy sources and we can expand the amount of solar used in this country.”

SEIA has already seen positive gains from their increased expenditures, Hanis said.

The group’s lobbyists were successful in promoting several provisions of the stimulus bill, such as the “lifted cap on solar investment tax credit for residential solar water heating systems.” In addition, the industry’s increased presence on Capitol Hill has “built bipartisan support of and knowledge about solar.”

Alternative energy groups are also showing signs of maturity in their lobbying efforts by forming partnerships and creating a collective voice.

Rather than compete against one another for profits or the government’s attention, groups such as the Clean Economy Network, says network lobbyist Tim Greeff, allow many alternative energy businesses to speak to Congress in unison.

“Clean tech hasn’t had a voice because [the industry] traditionally has been siloed,” he told OpenSecrets Blog. “They’ve all fought for their own piece … competing.”

Clean Economy Network calls itself the largest “clean tech” advocacy organization in existence. It’s members are professionals, entrepreneurs and business leaders from across the alternative energy sector. Though new to the scene — the group was created in March 2009, at the dawn of Barack Obama’s presidency — CEN has already spent more than $1.3 million in federal lobbying expenditures in just 17 months.

Such lobbying efforts, says Greeff, also allow the alternative energy industry to stand out in a crowded field of special interest groups.

But while alternative energy interests are just getting acquainted with K Street, the oil and gas industry has been a permanent resident for years.

Since 1998, the oil and gas industry has never spent less than $50 million on lobbying in any given year, and in 2009, it reported $175 million in lobbying expenditures. For the first six months of 2010, it spent another $74.9 million.

So does a rise in alternative energy lobbying threaten to erode the oil and gas industry’s political power?

Probably not, said American Petroleum Institute spokesman Bill Bush, adding that he is “not concerned” about the alternative energy industry’s efforts and “not aware of any impact” they’re having on the petroleum industry’s fortunes.

Bush also emphasized that the oil and gas industry “understands that there is a role for alternative energy” and has “invested billions in it.”

He added, however, that “on various issues, we may be on different sides.”

In 2009, API focused on energy legislation and “issues related to access to oil and natural gas development,” Bush said. The institute spent more than $7.3 million in 2009 on federal lobbying efforts after spending between $2.8 million and $4.8 million each year on lobbying between 2002 and 2008.

As this decade moves forward, climate and energy policy remains a key issue in Congress.

Barack Obama labeled such legislation a high priority long before he became president, and people and political action committees associated with the alternative energy industry responded with campaign contributions of $173,500. The oil and gas industry poured more than five times that amount into Obama’s campaign coffer, but gave most of its presidential campaign contributions to Sen. John McCain (R-Ariz.).

Such a bill, if passed, could have certainly become a major political victory for Obama, but it instead went nowhere, and major energy or climate change-related legislation appears out of political play until at least next year.

But with political focus on alternative energy constantly expanding, the lobbying power of the alternative energy industry may soon become as plentiful as Great Plains breezes and desert sunshine, particularly if Congress in coming months again finds an appetite for energy policy.

Media Contact

Viveca Novak
(202) 354-0111
press@crp.org

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